China steps in as US tariffs bite: Indian exports to Beijing soar 22% 

China has signalled its willingness to help India offset the impact of U.S. tariffs, even as India's exports to China recorded a sharp 22% surge in the first half of 2025–26. "India's exports to China surged about 22% in the first half of 2025–26 compared to the first half of FY25. China welcomes more premium Indian goods in its market and stands ready to help offset the impact of U.S. tariffs on India's trade," Chinese Ambassador to India Xu Feihong said on Sunday.

Feihong's assurance came after it was reported that India's exports to China rose sharply in FY25, led by strong demand for products such as telephone set components, shrimps, aluminium, and capsicum.

India's exports to China in April–September 2025 stood at $8.41 billion, compared to $6.90 billion in the same period of 2024, marking a 22% increase, The Hindustan Times reported, citing government data. The acceleration was particularly strong after the U.S. imposed higher tariffs on Indian goods in August. Exports to China rose 34% in September 2025 alone, touching $1.47 billion, up from $1.09 billion in September 2024.

Key segments drove the rise. Exports of light oils and petroleum products jumped 116%, from $686.11 million to $1.48 billion, while parts of telephone sets surged 162%, reaching $467.65 million. Frozen shrimps and prawns grew 25% to $467.51 million, sulphur exports rose 175% to $116.80 million, and aluminium shipments climbed nearly 59% to $191.93 million.

Notably, exports of some new items that were negligible or zero in the previous year saw significant traction — flat panel display modules of OLED rose from zero in H1 FY25 to $246.26 million in H1 FY26.

Experts attribute the trend to India's growing trade adaptability and supply-chain diversification. "India's 22% surge in exports to China in H1 FY26 is an encouraging sign of our exporters' agility and growing competitiveness, particularly in value-added segments like shrimp, aluminium, and telephone sets," said Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO).

He, however, cautioned that while the shift is encouraging, it is not yet structural. "While this growth suggests some diversification beyond traditional markets like the U.S., it is still too early to view it as a structural shift. Sustained export diversification will require deepening our presence in emerging Asian, African, and Latin American markets, while simultaneously consolidating our high-value trade with the U.S. and EU. The trend, however, clearly points to India’s expanding export resilience and adaptability," Sahai said.